Net debt-to-adjusted capitalization ratio

COG’s net debt-to-adjusted capitalization ratio at the end of 2Q17 was 27.6% compared to 28.5% on December 31, 2016. Total capital is comprised of a company’s debt and shareholder equity. A higher ratio indicates reduced financial flexibility.

COG’s management noted in its 2Q17 earnings conference that its 2Q17 balance sheet was in line with its long-term target. The company noted, “We continue to manage our business around maintaining an investment-grade-like balance sheet.”